Shares of Supertex, based in Sunnyvale, Calif., jumped $8.60, or 35.3 percent, to $32.98 in morning trading
Monday.

Both companies’ boards unanimously approved the acquisition. It needs approval
from Supertex shareholders. The transaction value excludes about $148 million in
cash and investments on Supertex Inc.’s balance sheet, the companies said.

“Supertex’s deep domain knowledge in high voltage analog and mixed signal
technologies and strong position in the medical, industrial and lighting markets
complement many of Microchip initiatives in these areas,” Microchip Technology
President and CEO Steve Sanghi said in a statement announcing the deal on
Monday.

The transaction is expected to close in the second quarter. The acquisition is
expected to add to Microchip Technology’s adjusted earnings per share in the
first full quarter after the transaction closes.